Google in Talks to Buy Yelp

Google Inc. is in discussions to buy local business review start-up Yelp Inc., according to people familiar with the matter. The companies have yet to finalize a deal, which could be for at least $500 million, according to one of the people.

A spokesman for Google declined to comment. A spokeswoman for Yelp, based in San Francisco, said it “does not comment on private discussions that may occur.” The talks were first reported by TechCrunch, a technology industry Web site.

Yelp, founded in 2004, aggregates local business listings and user reviews online and has gained some traction in major cities like San Francisco and New York. A Yelp spokeswoman said Friday that the company “achieved several months of profitability this past summer.”

If completed, the deal could help Google revamp its efforts to sell ads to small businesses, like coffee shops and dry cleaners, a group it has struggled to reach because they often don’t have Web pages to promote through search ads. Yelp has gone after the market with a cohort of sales people who call and pitch local businesses on premium features to enhance and promote their listings.